howardb@hal-pc.org has sent you an article from HoustonChronicle.com
Howard Bingham
Does anyone recall the last time Amtrak significantly increased their fares..?
This is from Houston Chronicle Saturday editions..
Howard Bingham
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http://www.chron.com/disp/story.mpl/headline/biz/5621590.html
Continental warns of 'tough decisions'
By BILL HENSEL JR.
Continental Airlines CEO Larry Kellner strongly hinted Friday that some
big changes in the way the airline is operating may have to be made
soon if high oil prices persist.
Airlines for months have been raising fares to try to offset the high
prices. Another increase of as much as $50 on round-trip tickets was
put in place by United Airlines and matched Friday by Continental.
But more may have to be done, the chairman and chief executive of
Houston-based Continental said Friday.
Kellner told employees in a taped message that at today's fuel prices,
the carrier will pay about $1.5 billion more for fuel in 2008 than it
did last year.
"We can absorb these extraordinary high fuel prices for a little
while," maybe a few months, Kellner said. "But if these prices
continue, we will have to make some tough decisions to make sure the
size of our network is right for a world with fuel at such astronomical
rates."
At least one other airline signaled Friday that changes may be on the
way because of high oil prices. At Atlanta-based Delta Airlines, Chief
Executive Richard Anderson told employees it will be rolling out a
comprehensive plan next week.
That carrier already has made some cuts domestically, he noted.
"Do everything you can to preserve fuel," Anderson told the Delta
workers in his own taped message.
Kellner told employees the carrier would not ask for more cuts and
concessions, as it did a few years ago.
However, "we'll all have to work together to increase revenues and
decrease costs," if oil remains high.
Whatever steps may be taken, Continental pilots, who rallied this week
in New York City to draw attention to their contract negotiations with
management, will make sure their interests are protected, spokesman
Mark Adams said Friday.
"This was the theme of our rally," Adams said. "Fuel costs what fuel
costs and pilots cost what pilots cost and sometime you have to raise
the fare for both."
Friday's fare increase by United and matched by Continental had not
been matched by other big carriers, but Rick Seaney of FareCompare.com
said he didn't find that surprising.
"Airlines along with consumers are probably absorbing the impact of
this jolt and it may take them a few days to decide on proper levels of
matching," Seaney said in a report. "Most likely they will match."
The $50 hike was only for the longest flights, with the increases for
shorter trips starting at $4 a round-trip, he said.
To stay in place, fare increases need all major airlines to
participate. If only one chooses not to raise prices, the attempt
usually collapses.
Airlines have raised fares at least six times in the past three months
as oil and fuel prices have continued to rise. The price for a barrel
of West Texas crude closed at more than $110 a barrel Friday.
Brought to you by the HoustonChronicle.com
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Jerry Sullivan
adjustments.
Even a subsidized service, visible like Amtrak, invisible like the airlines,
has to try
to maximize revenue. The airlines are somewhat more immune than AMtrak from
loss
of business because their bread-butter is business travel. I know that a
$50 increase
in SouthWest Fares will stretch out my visits to Houston, though they will
be much less
than sleeper fare anyway.
Jerry Sullivan